You can now easily buy shares on the Uganda Securities Exchange using MTN Uganda’s MOMO app. The app allows you to open an SCD account with the Uganda Securities Exchange account. Once the account is set up, you can can choose a preferred broker and then buy or sell any number of shares of any listed company.
Buying shares of a company makes you a shareholder which entitles you to dividends. As a shareholder you get to vote at the Annual General Meeting. You can also sell your shares easily if prices go up.
The main advantage with shares is that you require very little capital and you are not involved in running the business. Also the prices can go up and you can make some good cash. Plus it is relatively easier to liquidate shares compared to other asset classes like land. The problem is that our stock market is not very active and share prices have stagnated for a while. This has discouraged many people from investing in shares. I think what is missing is public education and awareness because shares are generally a good asset class to hold in anyone’s portfolio.
The platform currently has a few glitches like some bounced payments and delayed order fulfilment. However this is a welcome innovation which will help to increase financial inclusion of Ugandans in the capital markets.
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